Pulling Back the Curtain

Because you are reading this blog post, I will assume that you have been introduced to delicious Java Bite dried mangos.  Moreover, I will assume that you know that Java Bite dried mangos result from REI's effort to build into the lives of rural communities in Indonesia.  If you landed here without that background knowledge, you can get up to speed in two minutes by watching this video.

So, now that you know the basics, let me pull back the curtain a bit so that you can see what few people recognize.  To be honest, when REI allowed me to begin the development of these rural enterprises, I had know idea what was behind the curtain.  But now that Java Bite dried mangos are in production and finding their way to consumers in both Indonesia and the United States, it's time to dispel the notion that it's been a piece of cake!  Consider these rankings out of 189 countries in the world, which were recently published by the World Bank.*

114   
- This is the ranking for the country of Indonesia for it's "ease of doing business".

But hey, I'm a "cup is half full" sort of guy.  At least we are not drying mangos in Haiti, which ranks 180 out of 189.

155 
- Indonesia's ranking for the "ease of starting a business".

I will spare you the stories, but it took us a full two years to gain the legal permits necessary to carry out business transactions.

153 
- Indonesia's ranking for "obtaining construction permits".

Recently, a friend warned me to expect two years to elapse before our plans to build and operate a new production facility are realized.

117 
- Indonesia's ranking for "registering property".

The piece of land that we selected for a new production facility was negotiated in May.  Twelve months later, the owner finally had the land fully registered.  Regarding the next steps, including declaring the transaction, paying taxes, etc., it was estimated that final transfer is still months away.

172 
- Indonesia's ranking for "enforcing contracts".  

A little lesson in economics: Transaction costs increase when contracts are not enforced.  In such an environment the ability to manage transaction costs is an important business skill to learn.  I'm still learning!

71, 75, 78 
- Indonesia's ranking for "getting credit", "resolving insolvency" and "getting electricity", respectively.  

Finance and utilities are notable bright spots.  I don't expect to have any personal experiences with the first or the second.  But as we build a new village production facility I will soon make first-hand observations about the third matter.  Stay tuned!

160 
- Indonesia's ranking for "paying taxes".  

Yeah.  That's about right, . . . which is why I pay someone else to figure out and execute the payment of taxes for me.  Among the two certainties of life - death and taxes -, the former is much easier in Indonesia.

43 
- Indonesia's ranking for "protecting minority investors".

This is the best ranking Indonesia earned in the report.  Unfortunately, I'm not considered a minority investor.  I am a foreign investor, the protection of which was not evaluated for Indonesia.  I hope my personal circumstances never test the extent to which protection exists for me.

62 
- Indonesia's ranking for "trading across borders".

Having executed three shipments to the U.S., I can affirm that the third shipment was fairly straightforward.  But the first one represented months of confusion.  If you know what you're doing, exporting is relatively simple in Indonesia.  If you don't, . . . well, there's a learning curve to go up.

Now that you have peered behind the curtain, I hope that you recognize just how special are Java Bite dried mangos!

They are delicious.
They are healthy.
They create jobs.
They incentivize care for the environment.

AND THEY DEMONSTRATE WHAT PERSEVERANCE CAN ACCOMPLISH!




*Note:  Data for all 189 countries is available at http://www.doingbusiness.org/rankings

Building People Who Are Financially Vulnerable

Resource Exchange International, Inc. (REI) takes the matter of "Building People to Build a Nation" very seriously, mobilizing resources so that professionals in several countries can strengthen the strategic sectors of their country.  In Indonesia we direct our attention toward those whose income prospects are limited.  Specifically, we work among low-income families in rural villages, creating jobs that can equip them with skills and abilities they need to improve their lives.

In order to grasp the economics of this group of low-income households, consider data about their saving and borrowing practices.  Figure 1 presents some stark contrasts between the group representing the lowest 40% of household income and the group representing the upper 60% of household income.

Figure 1.  Contrasting practices of saving and borrowing.

Note that saving practices are noticeably less frequent among low-income individuals,

presenting a picture of financial vulnerability. In addition, over 70% of

low-income respondents reported that it would be difficult or impossible

to obtain funds in the event of an emergency.  Low savings behavior combined with limited prospects to fund emergency situations paint a picture of very fragile finances for those who are helped by REI in Indonesia.

In contrast, Figure 2 presents similarities between the two income groups, leading some to conclude that perhaps Indonesia has achieved a degree of equality between low- and high-income groups.  After all, the incidence of borrowing among the poor is quite similar to the incidence of borrowing among the high income families.  On the surface it appears that capital flows just as well toward low-income clients as to high-income clients.

Figure 2.  Apparent "equality" among the rich and poor in Indonesia.

However, it’s important to note that a low incidence of saving for the low-income population, which was observed in Figure 1, should imply a high incidence of borrowing. After all, the households who have no surplus cash reserves are the ones who need to borrow when they meet unexpected financial problems. The financial vulnerability of the low-income group makes borrowing more likely compared to the high-income group. The fact that a higher incidence of borrowing does not appear in Figure 2 provides evidence of a capital market failure.

In order to accomplish the aim of REI- building low-income individuals to build a community- finances must be addressed.  But rather than loan money to the low-income segment, REI in Indonesia has implemented a strategy involving income-generation, which strengthens household finances before emergencies arise.  Indeed, participating households typically double their annual income during periods of production.

The additional income obtained by the families who participate with REI allows those families to respond to emergencies and increases the likelihood for others that resources will be available when needs arise.

REI in Indonesia recognizes the financial vulnerability of those in the lowest income segments.  Believing that building into such people can lift the community, REI has devised a job-creation strategy that can develop those who are financially vulnerable to become productive members of society.

Check out the Java Bite online store to learn more about the products that result from REI's efforts.  In fact, take advantage of this special offer (the Family Bundle : $9.99 for 8 packs of delicious Java Bite dried mangos, shipped for FREE to any US address!) while it's available!

Can it happen in Indonesia?

Can Indonesia accomplish what happened in the Philippines?

The composition of mango exports from the Philippines changed dramatically during the last 10 years, shifting from low-value exports (fresh mangos) to increasing quantities of high-value exports, like mango puree and dried mangos.

The graph below shows that the value of mango exports (which represents most of what is captured in commodity code 80450) nearly tripled in the span of a few years.  During the same period, Indonesia maintained it's position as a trader of raw materials, which have relatively low export value.

What does this mean?  It means that the Philippine mango industry is way ahead of the rest of Southeast Asia.

Processing, instead of exporting, the raw mangos, adds jobs and income for the Philippines. Exporting those value-added, processed goods means that more people are working and earning money than if the raw mangos were exported.

Can Indonesia do this?  More importantly, can Indonesia do this in a way that allows more poor people to work and earn money?

Resource Exchange International, Inc. (REI) has devised a path for this to happen in Indonesia.

1.  Develop rural-based technology and processes that can produce exportable dried mangos.

Done.  You can find these delicious dried mangos in the US.

2.  Educate local residents to carry out the procedures under REI supervision.

Done.  You can view a short video to see what this looks like..

3.  Create a training and production facility which can expand a competent workforce able to operate and manage rural-based fruit processing enterprises.

REI will seek donors to fund a $250,000 project which establishes a training and production facility.  Without such a facility poverty alleviation goals may be sacrificed as the industry develops.  To join REI in their efforts to champion opportunities for the poor in Indonesia, select "Boaz Project" on this page and then complete the rest of the form.

Together, we can build people to build the nation of Indonesia.

Java Bite wants to go to America!

The island of Java is home to a lot of tropical fruit - mangos, pineapples, papaya, bananas, etc.  The continent of North America?  Not so much.

It's no surprise that the US doesn't produce a whole lot of tropical fruit products.  American farmers busy themselves with crops like corn, soybeans, wheat, etc.  So, America looks to the rest of the world to provide products made with exotic fruit.

Figure 2 shows that US imports of mangos, guavas and mangosteen have increased dramatically.  Countries like the Philippines and Thailand export a lot of these products to the US.  Indonesia hasn't been a very prominent player.  But that hasn't stopped us from being the first to ship dried mangos from Indonesia to the US.  Java Bite dried mangos from Indonesia are available right now in the US.  In fact, you can get them RIGHT HERE!

But why stop with dried mangos?  Java Bite wants to send pineapple products, too!  Figure 3 shows the substantial increase of US pineapple imports, mainly from Thailand.

Although Java Bite dried pineapple has been marketed in Indonesia for several years, those products have yet to make an appearance in the US.  But perhaps that may change in the near future.

And what about dried papaya?  And dried bananas?  Like dried pineapple, those Java Bite products have never made it out of Indonesia.  Java Bite wants to live in America and bring the whole family, too!

Create an account and sign up for our newsletter to find out when will be the next shipment to the US and which Java Bite products will be included in the shipment.  We will let you know when the other family members arrive.

Reversing the Trend

In 1776 Adam Smith stated what everyone believed at the time to be an irrefutable fact.

"Rich and civilized nations can always exchange to a much greater value with one another, than with savages and barbarians."

It made sense.  And it implied that trade would happen almost exclusively among the rich.

Indeed fifteen years of liberalized trade policies in Indonesia reinforce the notion that low-income, remote households are excluded from international trade.  Figure 1 shows that the exports from small- and medium-sized enterprises have diminished.  Specifically, the share of exports in the gross domestic product of Indonesia's small and medium enterprises have trended from low (9%) to lower (3.5%).

This matter motivated the President of Indonesia, Joko Widodo, to implore the diplomatic corps to promote abroad products made by small enterprises in Indonesia.  Apparently, the President would like to reverse the trend.

So, when the Indonesian embassy in Washington, DC wanted to include Java Bite products in their pavilion at the Summer Fancy Food Show, we accepted their invitation to participate!

If you happen to be in New York City, June 28-30, please visit our booth!

Java Bite products began with the motivation to train and equip village residents to produce export-quality dried fruit products.  Village-made products will find their way into the hands of folks in New York City.  Resource Exchange International, Inc. is proud to have created opportunities where none existed before.   I think Adam Smith would be proud too.

Democracy and Poverty Reduction in Indonesia

For the last ten years Indonesia's poor have had the right and the opportunity to vote for the country's president, as well as their local leaders.  Apparently, not everyone is pleased with that development.

At first, democracy didn't appear that threatening.  The first presidential election in Indonesia was held in 2004.  Susilo Bambang Yudhoyono (SBY) was elected president by nationwide popular vote, which had never before taken place in Indonesia.  Then, he was re-elected in 2009, when national elections were held the second time.  So far, so good.  After all, SBY was a former general and part of the political elite.

But recently, Indonesia elected Joko Widodo (Jokowi) in the third nationwide election for president.  Importantly, Jokowi had himself grown up in the slums of Central Java, demonstrating that under democracy anyone could become president.  Apparently, democracy had gained momentum to such an extent that it emboldened those outside the political elite to embrace expanded aspirations of leadership. Perhaps the political elite should feel a bit threatened.

But what about the rest of the 30 million people who are not electable?  Do they have a better future under democracy?  As democratic institutions have developed, the incidence of poverty has noticeably diminished, demonstrating that the country is much better off under democracy.

Percent of Population with Income Below the National Poverty Line.

"Not so fast", say the detractors, "Let's take a look at how poverty diminished before all of these expensive, contentious elections."

Prior to democratic reforms, presidents were determined in a very streamlined fashion by the national congress, which consisted of members who were determined by regional congresses, which consisted of members who were determined by local elections.  During the 80's and 90's government employees, and especially the military, were expected and often required to vote for candidates who represented a political party called Golkar.  Under that system Golkar's presidential candidate, Suharto, remained in office for decades, establishing himself as the longest serving leader of a Southeast Asian country.

Casual inspection of Suharto's poverty alleviation accomplishments leads one to the conclusion that indeed the incidence of poverty dropped dramatically from 1976 to 1996.  These were the years of "guided democracy", during which the population who lived under the poverty line diminished from 40% to 17% (after the measurement adjustment).

From "Indonesia: Poverty Reduction Program" by Nona Iriana, Ahmad Avenzora and Jainal Abidin
http://www.adbi.org/files/2012.10.23.cpp.sess2.4.indonesia.poverty.reduction.prog.pdf

Some in Indonesia would have you believe that the years of dictatorship saw more social improvement than the current years of democratic reforms.  In fact, those voices are even now trying to roll back democratic reforms by reverting to the practice of electing local leaders by those in a governing body, rather than by popular vote.  They seem to be saying, "Those of us who are the political elite know how to improve the country and we certainly don't need elections!"

While it is true that poverty diminished dramatically over the course of two decades during the Suharto era, few people have drawn attention to the toll that was taken on the government budget.  Specifically, when Suharto left office in 1998 government debt had reached $171 billion, which was nearly twice the level of Indonesia's GDP in 1998.  Yes, poverty dropped, along with the country's economic prospects.

Under the democratic reforms of the last ten years, the incidence of poverty continued a downward trend.  Notably, in 2012 government debt had reached about $200 billion, amounting to approximately  27% of Indonesia's GDP in 2012.  Yes, poverty dropped, along with the burden of debt.

So, let's connect the dots.  Democracy in Indonesia has birthed SUSTAINABLE poverty reduction, not the kind that cultivates dependency.

Do you think that those 30 million people under the poverty line should have an opportunity to vote for their leaders?

7 Tips for the Newbie: How to Manage the Costs of Collaboration

So, you want to be a manager.  Wonderful.  It's a fine work that you desire to do.  I have some tips for you but first let me introduce you to my world.

The leader of the farmer group says he will tile the floor, but instead he puts tile on the wall.  A woman says that she will come in at 7am, but instead she arrives at 8am.  Another woman has a wedding to attend and leaves three hours early, despite making a commitment to work until 5pm.  The woman who is in charge of distributing payment to other women retains a "commission" because of her position as the leader of the women.  Another village leader refuses access to the dehydrator when the next mango season arrives, effectively taking hostage an asset that he did not purchase.

In my world, the manager must learn to deal with these sorts of matters with dignity and persuasiveness.  Think of it as just one more set of costs that must be managed carefully.  A business cannot grow without managers who have the ability to identify unnecessary costs and find ways to reduce or eliminate costs.  Costs of collaboration are no different.  They represent transaction costs and they exist when one party in a transaction is willing to abandon commitments or manipulate the other party.  Because my world is characterized by high transaction costs, business success requires acumen to recognize and manage these costs.

So, if you want to be a manager, here are seven tips that can give you a good start.

1.  Cultivate a relationship with individuals.

The more personal is the relationship, the more you will be able to manage transaction costs.  Trust reduces transaction costs since it "is critical for the viability of most transactions and for the efficiency of conducting transactions" (Rao:2003, page 92).  In environments where collaboration is costly, you must view relationship-building as part of your job description.

2.  Project elevated values.

In group settings, you should take advantage of opportunities to give short lessons on morality.  It's true that staff meetings should largely be devoted to operational matters.  However, such meetings also present opportunities for you to speak briefly about honesty, diligence, faithfulness, service, personal sacrifice, courage, etc.  Reminders of values can realign people's attitudes and motivations.

3.  Communicate standards early and often.

Reminders about standards are just as important as reminders about values.  Among people who abandon commitments, you should be prepared to make frequent references to job expectations.  For instance, delineate the Standard Operating Procedures on a wall poster during the training period.  So that it doesn't get ignored over time (which usually happens with wall posters), refer to one or two of the items on the poster each day.

4.  Keep your cool.

In fact, smile.  A lot.  Even when others are abandoning commitments or attempting to manipulate.  Regard their behavior as normal.  Because in this environment of costly collaboration, such behavior is indeed quite normal.  Don't let manipulative behavior distract you from what really matters.

5.  Identify what really matters.

Suppose you have a problem employee who consistently under performs.  (This happens all the time in my world.)  Rather than just stew in frustration, identify the particular way in which the employee's behavior is undermining business viability.  Then, illustrate how that behavioral problem threatens what really matters to both of you - ongoing collaboration that benefits both parties.  Let the employee know that, as the manager, you want to see the collaboration continue so that the business can grow and the individual can succeed (i.e. not get replaced).

6.  Identify patterns.

The problem employee who has consistently under performed has accumulated a track record.  Any single infraction is merely an example of an established pattern.  Focus on the pattern, not the instance, and the way in which it undermines what really matters.  When an example emerges, be ready to refer again to the pattern.  "It's happening again, isn't it?" may be all the comment that is needed at the time.

7.  Reiterate overarching goals that matter to the individual.

Where collaborations are costly, individuals tend to abandon commitments for a reason.  They want to pursue goals that matter to them.  As a manager who has a personal relationship with the individual, you will want to probe the employee's motivations.  Why does he want to work with you?  To put his children through school?  Buy a new cell phone?  Please his nagging wife?  His response will give you insight into his motivations.  More importantly, you can offer gentle reminders about his goals and the way in which his work with you helps him to accomplish his goals.

Although this is not a complete list, it does give you a glimpse into the world of costly collaborations.  In order to become a manager in this environment you must master yourself and master interactions with others.  Management tasks in high transaction cost environments present plenty of challenges.  But remember that those numerous challenges also represent constant prompting to refine interpersonal skills.  If you aspire to be a manager of costly collaborations, it is a fine work that you desire to do.

References:

Rao, P.K. (2009). The Economics of Transaction Costs: Theory, Methods and Applications. Palgrave Macmillan: New York.  197 pp.

Costly Collaboration

Of all the economic principles and notions I have studied, the concept of transaction costs has helped me the most in my own effort to reconcile the tension between business pursuits and humanitarian goals.  Transactions between individuals and groups are not costless.  My collaborations with folks in Indonesian villages are certainly not costless.  In fact, the costs of transacting in those environments are substantial.  Why else would the average investor ignore opportunities?

Each transaction must be carefully scrutinized.  We need to consider the search costs, the information costs, the bargaining costs, the monitoring costs and the enforcement costs of every sort of collaboration.  Of course, those costs would be very small if people were always honest, transparent, forthcoming, compliant, faithful, cooperative, congenial, etc.  But because people are not that way, business pursuits will be costly.  The humanitarian response is not just to bear the costs of collaboration but to impart education and training to such an extent that transaction costs are reduced.  When the humanitarian effort is successful, business pursuits yield a favorable return, investment in the area increases, new local jobs are created and the lives of villagers improve.

Java Bite dried mangos result from painstaking efforts to educate and train village residents.  

It's business.  

But it's not business as usual.

Mango Muffins

Warning:  This blog post contains delicious recipe content.  Viewer discretion is advised.

If you live in North America, you probably have sampled baked goods that have oatmeal as an ingredient, like oatmeal cookies and oatmeal muffins.  You may have noticed that fruit also has found a place in these baked goods to produce things like oatmeal raisin cookies and oatmeal banana bread.  Sounds yummy, right?

If you are from North America, you haven't seen mango appear very frequently in baking recipes.  But it looks like that situation may change.  In 2007, 14% of consumed mangos were in the form of a food ingredient.  By 2011 that figure nearly doubled to 27%.  Indeed, "mango availability per capita has increased 32 percent since 2005 to an estimated 2.47 pounds per year in 2012" (www.mango.org).  As mangos become a more common component in North American diets, it's expected that mango ingredients in baked goods will also become more common.

Here is your chance to get ahead of the curve.

Introducing . . .

Mango Muffins (with Oatmeal Raisin and Apple)

3 cups oatmeal
1 T baking powder
1/2 tsp cloves
1 tsp cinnamon
1/2 tsp ginger
1 tsp salt
5/8 cup Java Bite dried mangos (chopped)
1/2 cup honey
5/8 cup nonfat milk
2 large eggs
1 cup grated apple (about 2 apples)
1/4 cup raisins

Chop oatmeal in blender until it has the consistency of flour.  Combine the oatmeal flour with the remaining dry ingredients in a bowl (cloves, cinnamon, ginger, salt, baking powder and raisins).  Combine the wet ingredients (eggs, honey, nonfat milk) with chopped Java Bite dried mangos in a blender and puree.  Combine puree with dry ingredients and the grated apple.  Pour equal amounts of the mixture into 12 to 16 muffin containers.  Bake at 375 for at least 20 minutes.

You will note that this delicious recipe results in a low-fat, low-calorie snack (about 90 calories per muffin) that has a yummy tropical fruit taste.

Give this recipe a try and let others know the results by leaving comments below!

Mouths to Feed

Village workers earning money

 "Don't try to work with village people.  It will be much more difficult for you."

Those words from a business owner in Indonesia caused me to pause and carefully consider the path I was forging for myself. Although I had that conversation over six years ago I have never forgotten the warning.  It was perhaps the best warning I ever ignored.

Has it been difficult?  Absolutely!  But despite the warning, I felt it was necessary to do what I could to help people who were living on $2 a day.  Over the years since that interaction with the businessman, it seems that my convictions have grown even stronger that, difficult or not, working directly with village residents may be the only way to create jobs among them.  After all, there are mouths to feed in their families.

Has something noteworthy been accomplished?  At the very least, it is now evident that village communities are capable of producing food products for export.  There are mouths to feed in the rest of the world also.

Mouths to Feed in America

In September, we shipped 705 kg of packaged dried mangos to the US.  Of the 2822 packages that were shipped, almost all have been sold.  In fact, as of today (May 17, 2013), only 211 packages remain.  The remaining packages may be sold soon because of the special offer (see below).

Java Bite dried mangos in US stores.

The mouths in America had noticeably different tastes than the mouths in the villages of East Java.  Ask a villager in Tiron to taste three different types of mango blindfolded and he/she will guess them correctly every time.  On the other hand, the average American may not even be aware that three different types of mango exist.

But ask an American about dried fruit and you will discover an awareness of dozens of types of dried fruit products, which are soft, chewy and full of natural flavor.  For an Indonesian, dried fruit is fruit that has been subjected to deep frying in a pan of hot oil!

It was indeed a challenge to train folks who have a very sophisticated knowledge of fresh mango to make a product that they had never seen, and that they didn't even want to buy!  After all, when the fresh product is so abundantly available in such appealing variations, a dried product doesn't seem that appealing, unless it is fried and covered in chili sauce.

Nevertheless, these villagers succeeded where many thought they would fail.  They produced an exportable product, maintaining hygiene and product quality standards required by certifying agencies.  If you don't believe me, you can check out the health certificates from 2012 and 2013.  But perhaps more importantly, they made a product that satisfied the tastes of Americans.  Check out the unsolicited customer comments here and here and even here.  By feeding mouths in America they are able to feed the mouths of their own family members.

Another Shipment

With dwindling inventory in the US, we felt it was time to execute another shipment.  By the end of May, there will be another 6750 packages of (150 gram) dried mango available for sale in the US.  Packed in 135 cases, the shipment began it's long journey from Tiron village in April.  When the product arrives at the warehouse in Iowa, you will be able to purchase the product on our online store.

Expression of Gratitude

If you live in the US, we want to show our appreciation to you for being a part of the market that is helping us to help the folks of Tiron village.  If you sign up for our newsletter and let me know that you did so by utilizing the "Contact Us" page, I will email you a coupon code that will deduct 33% off of the purchase price for any amount of Sunburst dried mango (250 gram).  Of course, we can only make this offer while supplies last, so you may want to check product availability before you make plans for large purchases.

You can check product availability, sign up for the newsletter, receive updates about the recent shipment and order product at our online store.

http://store.javabite.com

Getting to Know You

Paging through my passport in his stuffy, humid office, the immigration officer probed the little book to find little tidbits of information from which he could assemble a picture of me.  I decided to make it easier for him.  After all, I chose to be the one sitting in the chair opposite his desk, instead of some hired intermediary who typically shuttle documents between foreigners and immigration officials.  I wanted to meet him face to face.

As a newcomer to the city of Malang, where REI-Indonesia is now basing operations, I feel the need to know and be known by an increasing number of people in a growing network of professional connections.  So, within days of our arrival in Malang, I determined to meet as many people as I could in the immigration office by personally carrying out the normal procedures required of foreigners.  It didn't take long before I had personal meetings with heads of the office, all of whom wanted to know who I was.  After all, it is their job to know the foreigners.

I kept the story brief but relevant, describing the period I was consultant, which he noted in my passport, and the insight about poverty alleviation I gained from working with nationals.  Then I told him about the years of technology development and the subsequent years of training village workers.

He offered a quick response.  "Production is the easy part.  There are lots of things that can be produced in villages.  The hard part is marketing.  You can't create jobs if you don't succeed in marketing."

I mentioned the recent export of village products to the US and the plans to expand production, which is why I was requesting a visa from his office.

He chimed in again.  "People need to work and businesses are important.  It's a shame that the environment suffers so much."

I described the ongoing environmental degradation in the village, which has suffered under the unregulated practices of mining interests.  Then I tried to connect the dots for him:  by processing mangos in the village, residents have more economic reasons to refuse the short-term contracts of mining companies that leave their land unusable.

The lights went on for him.  "That's great.  That's a good business model."

Not only have I received a visa, I have gained a friend and an ally in the immigration office.  He represents another person in what I hope to be a growing network of professionals who can grasp our intentions to "build people to build a nation".

Empowerment

I have to admit that I like to work with my hands.  I derive satisfaction from a finished project.  And if tasked with a project of tearing something apart . . . well, I've taken pride in work like that since I was three years old.  Last week when I was in the village, I noted that a neighbor was tearing down a house with nothing but a crowbar!  I was a bit jealous.  But I wasn't the only one.  A seven-year-old also helped out with his hammer.

As a toddler with Lincoln Logs I thought the repeated cycle of building and toppling was great fun.  And seemed that the parents wholeheartedly approved, pointing to abstract child development principles like autonomy and empowerment.

In arenas where ideas and solutions to poverty are discussed, the topics often include notions of empowerment, which usually means that individuals and communities have been granted autonomy to utilize resources according to their own preferences.  Building a new house with your own hands, after first tearing down the old one with your crowbar, gives evidence of an empowered people who can shape their own destiny.

But doesn't the picture of the man with the crowbar also reveal vulnerability?  After all, whatever can be torn down with a crowbar can also be demolished with a small earthquake.

With regard to processing mangos in village areas, if empowerment was the only objective, we would have designed the dehydrator, devised the systems, trained the farmers, . . . and then left.  Doing so would have granted them autonomy, leaving them with the resources to shape their own destiny.  But both the group leader and the village participants have unanimously voiced an appeal for continued involvement with us, who are village outsiders, tackling the matters of process improvements, product development and marketing.

I have received both criticism and commendation for our continued collaboration with the farmer group.  On the one hand, I have been criticized for insulating the village workers from challenging matters like marketing.  On the other hand, I have been commended for the ongoing improvements to the production process.  But no one has mentioned the matter of vulnerability, which I think is the matter most on the mind of the village participants, who have indicated that all production would completely stop if we ceased our involvement.

I don't blame them.  Food manufacturing is a complicated undertaking that requires knowledge, skill and care in all aspects of production.  Understanding the magnitude of the risks, the farmer group would choose to forego production, opting instead to return to the menial tasks of small-scale farming and gravel-making.

As I "build people to build a nation", my objective has shifted away from the granting of resources that can bolster a fragile sense of empowerment.  Instead, my aim is to address remaining areas of vulnerability, like technical competence and management capability.  More than just increasing assets, meaningful community development has to do with improving human capabilities that reduce vulnerability for individuals, families and communities.

You probably didn't think that a bag of dried mangos contained abstract ideas, like empowerment.  The next time you taste the sweet, natural flavor of the slices in a bag of Java Bite dried mangos, know that the product was produced with a view to building the people who made it.

Social Entrepreneurship?

A year ago I had never heard of the term - social entrepreneurship, which was first introduced to me by a professor at Iowa State University after she had given a presentation on entrepreneurship.  As I explained what I do - i.e. develop technologies and processes for mango products so that jobs and incomes grow in underdeveloped areas - she said, "Oh, you're talking about social entrepreneurship, which is another huge topic that I didn't have time to address."

Not wanting to look stupid, I didn't ask her to define social entrepreneurship.  After all, if it's a huge topic, I should know something about it, right?  Especially if it's what I do!

It turns out that I'm not the only one who needs some help to understand the term.  Fortunately, some smart people have responded to requests for clarification.  Here are some of their thoughts. . . 

"I think social entrepreneurship is a business built around the objective of solving a social challenge."  -Dina Sherif, Associate Director at John D. Gerhart Center for Philanthropy and Civic Engagement, American University in Cairo.

"Social entrepreneurs are addressing specific social issues and doing something about them to solve those problems and rally support for that cause through various tools." -Fadi Ghandour, Founder & CEO of Aramex.

"Social entrepreneurship is about building systems for changing local solutions to local problems. Social entrepreneurs are committed, unique and creative individuals who are obsessed with finding structural solutions to problems." -Iman Bibars, Regional Director at Ashoka Arab World.

Java Bite products exist as a solution to a social dilemma.  Mango trees are being destroyed.  Unemployment in rural Indonesia is high.  Investment is low.  Average incomes in the area range from $2 to $3 per person per day.  By creating technologies, refining processes and developing markets for dried mango products, we are addressing critical issues faced by tens of thousands of people who depend on the mango industry.

I didn't know the word a year ago, but "social entrepreneurship" indeed describes what we do when we fill up a bag of Java Bite Sweet Dried Fruit.  And the social impact of our business is so important to us that we refer to it on the back of our package.  Visit the online store and purchase these delicious products!  When you do, you will be part of the solution to social dilemmas that exist in Indonesia.

* Quotes are from "Social Entrepreneurship vs. Social Activism: What is the Difference?", http://ht.ly/eCcgG

Talk About Variety

Did I mention that Indonesia has over 200 documented varieties of mangos?  In the markets of Indonesia you might be able to find five or six varieties that have commercial value.  So, 200 hundred varieties seems like a lot, doesn’t it?

So, how does 14,000 varieties strike you?  That was the number of apple varieties in North America in the 19^th century.  Tim Hensley writes,

“In the 19th century, apples came in all shapes and guises, some with rough, sandpapery skin, others as misshapen as potatoes, and ranging from the size of a cherry to bigger than a grapefruit. Colors ran the entire spectrum with a wonderful impressionistic array of patterning—flushes, stripes, splashes, and dots. There was an apple for every community, taste, purpose, and season, with winter varieties especially prized. Apples were used for making cider, baking, drying, eating out of hand—even as livestock feed.” (from “A Curious Tale: the Apple in North America”, Tim Hensley, Brooklyn Botanical Garden,  http://www.bbg.org/gardening/article/the_apple_in_north_america)

Currently in North America about ninety varieties are grown commercially and a host of other heirloom varieties live quietly in the private gardens and orchards of hobbyists.  While they may cultivate apple trees as a hobby, such people are not novices.  Folks like Tim Hensley have an exceptional grasp of genetics, horticulture and grafting techniques.  They are the volunteer guardians of the apple species.

In the village of Tiron, where we are beginning another season of mango drying, recent research revealed that 36 mango varieties exist but only three or four varieties are grown commercially.  The other varieties have lived in quiet neglect in the same mango groves that are being threatened by mining concerns.

In an effort to encourage cultivation of mango trees and preserve existing varieties the national government has recruited the help of Mr. Jem, who has worked with me for six years.  During the past year, Mr. Jem has grown 5000 seedlings to be used for the grafting of underrepresented mango varieties.  Local farmers are expected to take home a seedling, choose a variety to graft, plant the tree on their own land and care for the grafted variety.  Not all of these farmers will have the same motivation as heirloom hobbyists.  “If there is no real commercial value to the farmer, why would they want to care for the tree?”, remarks Mr. Jem, stating an obvious fact about people who live on $2 a day.

An optimist would expect Mr. Jem to become a legend like Johnny Appleseed, propagating mango varieties in a way that preserves biodiversity.  A pragmatist would expect an economic version of natural selection to take place, resulting in a relatively small set of commercially viable mango varieties. 

The researcher in me wants to know how well each of these varieties dry.  Finding some with attractive taste and texture characteristics after drying would allow us to develop markets for previously unknown varieties.  I could be busy for many years to come!

  

Alongside "Johnny Mangoseed"?

Mango Manager

Mango season has arrived!  It is now time for me to roll up my sleeves, adorn a face mask and sit down in room full of women with knives!

Every year we face a new set of challenges.  In 2008 the fabricator of our dehydrator made some major errors, preventing production for that year.  (We now have new design that works much better.)  In 2009 we researched, devised and applied new procedures to improve the texture of the final product.  (Our product development efforts have succeeded in making a dried mango product that has a texture as good or better than every other similar product on the market.)  In 2010 unexpected and frequent rains during the dry season hammered the mango tree flowers resulting in a 30% drop in mango production that year.  (This year the expected harvest appears to be in the normal range.)  In 2011 collective methods of work- i.e. equal payment for everyone, regardless of individual abilities- was showing signs of needing reform.  The proficient workers correctly voiced concern that the system didn't reward them properly.  So this year we embark on the necessary reforms, which represents another healthy step toward the goal of establishing a village enterprise, which is sustainable and efficient.

I guess I've become a mango manager.  I guide our dried mango production in such a way that economic principles (like individual pay for individual work) find application in specific cultural contexts.  I don't know exactly what the new system will look like yet.  But ample discussion with the group leader, my local staff and the workers themselves, should result in a new way of working that will satisfy everyone.  I try to make everyone happy - particularly the room full of women with knives!  ;-)

Plural forms

Here's a confession. Every time I write the plural form of the word 'mango', a surge of paranoia comes over me.

"Do I use 'mangos' or 'mangoes'?"
"If I use 'mangos', will people think I'm stupid and illiterate?"
"If I use 'mangoes', will people think I'm indecisive and wishy-washy because I usually use 'mangos'?"
"What if someone asks why I use the spelling 'mangos'? Should I contrive some etymological reason?  Or should I be honest and tell them I just want to save a keystroke?"

My palms are sweating even now.

You may be wondering why I have never let the dictionary settle the matter for me. Well, I tried. And my paranoia persists. Here is the entry.

 mango.  |ˈmaNG gō|.  noun.  (pl. mangoes or mangos )  
1.  a fleshy yellowish-red tropical fruit that is eaten ripe or used green for pickles or chutneys.  
2. (also mango tree ) the evergreen Indian tree of the cashew family that bears this fruit, widely cultivated in the tropics. 

So, now you know that you can spell the plural form of mango EITHER way! Instead of eliminating my anxiety, it gives it another twist.

"Which form is most popular?"
"Which form do my readers prefer?"
"Which form makes me look less stupid?"

Please help me put an end to my quandary.  Write down in the comment below the plural form of "mango" you feel most comfortable with.  In that way, I will at least know the preferences of readers of this blog!

Start with "why"

 I'm not an inspiring leader but I am motivated by the "why" question. Simon Sinek explains the reason that each one of us derive energy from purpose. Determination, persistence and perseverance all come from one place . . . knowing why.

As we make Java Bite Sweet Dried Fruit, our aim is to infuse hope in underdeveloped areas by creating opportunities, positively impacting individuals, communities and the broader local economy. We envision employees equipped, families nourished, communities enabled and lives enhanced with new products.

What is your aim? Share it here!

Dehydrators and people

 In the village of Tiron, natural resource extraction has become a way of life. Agriculture provides the largest amount of community income.  Mining in the village is a close second.  In both agriculture and mining the tools of the trade are very simple - hoe, plow, hammer.  Low technologies present very limited opportunities for personal development.

To be sure, swinging a hammer takes some skill.  And farming requires intuition acquired from years of experience.  And some people I have met in the village genuinely like the freedom and unstructured lifestyle of independent manual work.  But most people, including those who shape public policy, regard development as that process that equips people for better jobs.

Resource Exchange International, Inc. makes that process happen in the village of Tiron.  Dehydrating technology, which represents a higher technology than hammers and hoes, facilitates development of individual competencies.  REI has invested in the research and development of dehydrators that have been successfully deployed in village areas, including the village of Tiron.  Through the introduction of these technologies, people are built and the prospects of community development are enhanced.

Building people to build a nation . . . one dehydrator at a time.

Yummy Scones

You have already figured out that Java Bite dried mangos have a cool story.  But if you are from North America, you may not know exactly what to do with dried mangos.  As a snack, Java Bite dried fruit is an excellent choice for health conscious consumers.  And you like having a nutritious snack with a cool story.  Now you want to venture out and explore other ideas.  Here is a winner . . . Mango Scones!

The experienced baker will take note of step 3.  An inexperienced person, like myself, will think that it really doesn't matter how you cut butter into flour.  Wrong!  Be careful to keep the flour from caking together, which is the purpose of the knives.  Applying the proper technique will yield a light, fluffy result.

Give it a try!  And post your comments here!

Pivotal Moments

The pivotal moments of one's life are not always recognized as such.  There is no doubt that a moment like September 11, 2001, for it's horrific magnitude was certainly recognized as a pivotal moment.  But perhaps not in the way that most people think of pivotal moments.

Nationalism changed.  At least for a while.  At the time, being an American evoked emotion and devotion unlike any period I had lived through.

International warfare changed.  As Americans, we knew we were hated more than we knew the reasons why and more than we knew the identities of those who hated us.  National security required new tactics.

Public policy changed.  A sympathetic view emerged that supposed that anti-American attitudes originated from constrained economic opportunities.  A fresh agenda emerged that attempted to address economic underdevelopment in countries that had anti-American populations.

I changed.  Although I had already focused my attention on the economic development of rural areas in Asia, a new demographic captured my attention.  Countries where Islam is the majority religion got on my radar and stayed there.  As I probed villages in Indonesia, it became clear that natural resource extraction, rather than innovation, drove economic development.  Although agricultural research and development has improved productivity, the gains from those efforts have not exceeded the returns to labor of rock extraction in locations where suitable construction materials can be obtained.  In places, like rural villages in Indonesia, where extraction dominates innovation the local economy abandons value creation as a driver.  Consequently, their economic prospects diminish.  I didn't fully grasp these notions eleven years ago when my life direction shifted unnoticeably.  

Eleven years ago I never imagined I would be championing products from rural Indonesia.  I never imagined I would be promoting value-added technologies and processes that could double the annual incomes of those who participated.  I never imagined that I would be training a group of villagers to acquire skills and abilities that help them do more than just extract rock from the mountains and streams in their area.

On September 11, 2001, the direction of my life changed.  It wasn't because of nationalism or international conflict or public policy or anything else that might have changed on that day.  It was my own pivotal moment, which was hardly recognized as such.